Refer to the diagram. This production possibilities curve is constructed so that:
A. resources are presumed to be perfectly shiftable between bread and tractors.
B. the opportunity cost of bread diminishes as more bread is produced.
C. the opportunity cost of tractors increases as more bread is produced.
D. the opportunity costs of both bread and tractors increase as more of each is produced.
D. the opportunity costs of both bread and tractors increase as more of each is produced.
You might also like to view...
When Jack's income increases by $5,000, he spends an additional $4,000 dollars. This implies that his marginal propensity to consume is 1.25
Indicate whether the statement is true or false
Economic growth focuses on ____________, utility focuses on ____________, and the capabilities approach focuses on __________________.
A. human development; individual pleasure; output B. output; human development, individual pleasure C. output; individual pleasure; human development D. human development, output, individual pleasure
When arbitrage occurs across countries with flexible exchange rates and when the bonds in each country are identical and there are no barriers to capital flows:
A. the inflation rates in each country will be identical. B. the interest rates on the bonds will be identical. C. the prices of the bonds will be identical. D. none of the answers provided is correct.
All of the following are characteristics of perfect competition EXCEPT
A. homogeneous products. B. each firm is a price taker. C. a lack of barriers. D. product differentiation.